Finding the Best Contractor

Home contractors have been busy since the economy began to recover, and increased material costs have raised their prices. What does this mean for people who want to renovate their home? Finding a contractor may not be as simple as it once was. Follow these tips to make sure you and your home are in good hands:


Ask friends, family members and neighbors for referrals. Take the names of at least three different contractors. When you call them, let them know you have been referred by one of their previous clients. This will incentivize them to maintain a high level of customer satisfaction. Contractors can also be found online on websites such as the National Association of the Remodeling Industry.

Know what you want to accomplish and how much money you want to spend. This shows you are serious about home renovation, which contractors admire when they are considering bids. At the same time, feel free to get the contractor's opinion. Asking for a contractor's initial thoughts about a project communicates that you value his or her expertise. It also gives you a better idea of how the contractor thinks, based on the feedback he or she provides. It's best to talk about the overarching plan before you discuss price.

Never hire a contractor solely based on price! You will be working closely with this person for a prolonged period of time. The ideal contractor is a good communicator who you feel comfortable discussing your plans and budget with. Someone who comes off as untrustworthy is not right for the job. 

Solicit bids from multiple contractors, and disregard those that come in suspiciously low or high. It's okay to let them know you are getting bids from other contractors. If a bid comes in above what you are willing to pay, tell the contractor how much lower you'd like to go and ask for suggestions on how to lower the cost of the renovation with as little impact on the overall project as possible. Simply negotiating (asking for the same amount of work but at a lower cost) might lead contractors to cut corners. Allow for an additional 10-20% for unexpected expenses. 

Finally, ask for a rough start and end date but keep in mind that you may have to wait for a good, affordable contractor. Want additional information on hiring a contractor? Click here or watch the video below:

Home Improvements with the Best ROI

If you'd like to renovate your home but don't know where to start, consider the five projects below--each with a phenomenal return on investment (ROI) according to the 2014 Remodeling Cost vs. Value Report. Remember, you don't have to update your home all at once. In fact, tackling a few projects every so often will save you a lot of time and effort when you eventually go to sell your home. It will also keep you from spending a lot of money all at once on renovations expenses.

In order of approximate project cost:

1) Replace your garage door and/or front door. Both of these projects will increase your home's curb appeal, improve insulation, and strengthen security. 

• Cost: $1,162 for a steel entry door and $1,530 for a garage door. 
• ROI: 96.6% (entry door) and 83.7% (garage door). 

2) Add a deck. Deck additions now have the best ROI since 2007. Already have one? Add an outdoor fireplace or grill area to dress it up!

• Cost: $9,540 for a 16x20 foot deck
• ROI: 87.4%

3) Replace your windows. Buy energy-efficient models that will help you save money on heating and cooling bills while earning energy tax credit.

• Cost: For 10 standard windows: $9,980 (vinyl) to $10,900 (insulated wood)
• ROI: 78.7% (vinyl) and 79.3% (wood)

4) Update your kitchen. You don't have to tear down your kitchen in order to improve it. Leave cabinets in tact, but replace doors and drawers. Buy new, energy efficient appliances as well as a new sink. Touch up paint and cracked flooring. Finally, replace your countertop. 

• Cost: $18,856 
• ROI: 82.7%

5) Add a bedroom and bathroom to your attic. This is an expensive addition, and may not make sense in every home (for example, if you already have more bedrooms than most homes in your area). However, if you have an unfinished or  unused attic space and are serious about increasing the value of your home, this is a good option to consider. 

• Cost: $ $49,400 (15x15 bedroom with a 5x7 bathroom with a shower)
• ROI: 84%
  
  
  

Location, Location, Location!

Buying a home requires you to distinguish between your wants and your needs. Often, buyers can’t find a “perfect” home. Location is particularly tricky—the better the location, the higher the price. If nothing else, it’s important to be in a good location for resale value. If you have your heart set on a certain area or neighborhood but can’t find the home you want in your price range, you have several options.

Downsize. Consider a smaller house with a smaller yard and/or garage. The selling price of a home reflects the number of beds/baths in that home; sacrificing a home office or guest bedroom are both good options.

Switch home types. Generally speaking, single-family homes are more expensive than any other type of home, including condos, apartments, and townhomes. Don’t forget to consider HOA (homeowners association) fees or condo dues when comparing the price of a home to that of an apartment or condo.

Buy a home that needs work. Just as home price reflects the number of bedroom a home has, it also reflects the condition of the home. You will find the best deals in older properties that need some degree of renovation or repair. If you can live comfortably in the home for a few years, this may be the best option for you. Save money for repairs, and tackle them down the road. Remember that home renovation can be costly, although some modifications are inexpensive and easy enough to do by yourself (e.g., painting the walls).

Rent. The median age for the first-time homebuyer is increasing. Why? It’s more cost efficient, and provides the renter with more flexibility in the future. If you can’t afford your dream home just yet—don’t panic. Take the time to save up for a down payment, although be aware home prices may rise in the meantime. Look into signing a lease-to-own agreement (AKA lease-purchase agreement), which allows some of your rent to go towards your down payment.

Have any questions? Ready to buy? Contact me today!

Home Renovations that Yield the Best Return on Investment

Updating an older home can be overwhelming. When deciding how to spend your home renovation budget, it’s good to know which projects yield the best return on investment. Various sources such as U.S. News and CBS News state that updating kitchens and bathrooms will improve a house’s value (with a return on investment as great as 75.4%). Ways to improve your kitchen without completely redoing it include refinishing surfaces, upgrading appliances, and installing new light fixtures. 


Other sources, including This Old House Magazine, emphasize the importance of improving a house’s curb appeal, thus enhancing a buyer’s initial perception of a property. Projects that enhance curb appeal include replacing your entry door and garage doors with updated, steel models. It’s also a good idea to update your windows. Keeping a well-maintained lawn is one of the simplest ways to enhance curb appeal. 

When it comes to adding on to your home, outdoor decks offer a decent return on investment. Home offices with built in furniture, however, do not. This limits what the next homeowner can use that room for. Another unadvisable project is adding a pool. Many buyers see pools as a pain to maintain (not to mention, they decrease the usable size of the yard). Homeowners who add a pool should do so only for their personal enjoyment, not as a means to increase their property’s resale value. 

Want additional advice? Feel free to contact me.